1. Do you feel the entry of a Walmart Supercenter in a small trade area (<200,000 population) is positive or negative for the quality of life in that area? Defend your answer after taking a positive or negative position.
2. Which members of a community might typically oppose a Walmart Supercenter? What are their objections? How can Walmart answer these complaints?

Walmart Supercenters have opened in more than 3,000 locations throughout the United States since their inception in 1988. These outlets offer a retail format that can have major economic and quality of life impacts on a community. Customer satisfaction, a primary goal of Walmart, is achieved through convenience (one-stop shopping) and low prices. Walmart usually manages to out-compete other generalists, such as Kmart and Target, through effective marketing and aggressive expansion policies. Target has shifted its focus to higher quality products at reasonable prices, while Kmart made a less than successful attempt to compete directly with Walmart by opening its own supercenters, known as Big Kmart (or Big K). Target has also begun to open its own supercenters. Walmart’s margins reflect a competitive advantage, however, and customers keep returning because of the low prices.

Emergence of a new Walmart Supercenter means many things to smaller trade areas. For example, when a 213,000 square foot Walmart Supercenter with approximately five acres of floor space opened its doors in Fort Collins, Colorado, the store was in addition to a previously existing, but smaller Walmart Supercenter on the other side of Fort Collins. The city has less than 150,000 residents but is surrounded by several smaller cities and communities that expand the trade area to over 200,000. When it first opened, sales revenues at this store were expected to average $2 million per week, yielding annual sales tax revenues for the city estimated at $2.2 million. The development of the surrounding shopping center was expected to lead to large volumes of traffic. A number of retail stores rent space inside the massive facility, including a fast food chain, a hair salon, and a portrait studio. The adjacent shopping center includes a Home Depot, a bike shop, a bank, other service providers, and several restaurants.

The effect of a Walmart Supercenter on the local economy is not limited to increased sales tax revenues and business. It also can have negative effects on local retail operations (sometimes referred to as “Mom & Pop” stores) that cannot offer the same low prices and variety as Walmart. Supercenters have driven Walmart to become one of the largest corporations in America. In addition, Walmart is currently the highest volume grocery seller, surpassing chains such as Safeway, Albertson’s, and Kroger, which focus specifically on groceries and do not provide the complete product lines found in a Walmart Supercenter. Many people argue that the introduction of such a large retailer causes local businesses to fail. Citizens also sometimes fight against using limited city budgets for infrastructure development, such as roads, traffic lights, and water/sewer lines, to support Walmarts and accompanying sprawling development.